Accounting and Tax Basics for Small Business Owners

Welcome to my blog! My name is Katrina, and a few years ago, I opened my own business. Unfortunately, due to really innocent errors on my part, I ended up with a huge tax bill – it was so unwieldy I had to shutter my business. However, I learned a lot from that experience. I took classes and read as many books as I could find on accounting and finances, and I spent a lot of time reading info from the taxation office's website. As a result of that diligence, I was able to open another business, and I take care of the accounting on my own practically perfectly. If you own a small business or are thinking about opening one, this blog is for you. Please explore and learn.

Things You Can Get With a Tax Return Service

Finance & Money Blog

As the summer ends and the season rolls into September, you will likely start to think about your tax returns. If you want to ensure that you file your return correctly, and that you maximise your chances for a sizeable return, you need to contract with a tax return service. Here is what they can offer you.

Tax Consulting -- Before you even file your taxes, a tax return firm can review all your financial information to identify areas in which you may be costing yourself money. This may be especially beneficial if you find that you have been coming out on the short end for the past few years, having to pay the government money owed in taxes. Tax return firms specialise in finding ways to reduce your taxable income so that you can keep more money during the year or receive a refund when you file. They can also offer you tax shelters such as retirement accounts and money market accounts that allow you to reduce your taxable income by placing money in accounts that are protected against taxation.

Tax Filing -- Filing taxes is an area of expertise for tax return firms, but they don't just rubber stamp your return, because their main goal is to maximise what you can get back in a refund. For example, if you are self-employed and work out of your home, you may be entitled to take a home office deduction, as well as a deduction in the rent or mortgage you pay because a portion of your residence is used for business purposes. Tax return firms also specialise in looking for areas of your return that may result in a possible audit. For example, if you have taken a lot more deductions in the current filing year than you did in previous years, a tax return specialist can determine how to explain the increase in deductions so that the Tax Office doesn't audit you. If you're married, a tax return firm can also advise you if it's more advantageous for you to file separately from your spouse or if a joint filing will benefit you more.

Investment -- Tax return specialists are also trained to provide you with advice on how to invest a portion of your income into things such as mutual funds, life insurance annuities and bonds. They can project your tax burden for five, 10 and 30 years so that you have an idea how your tax structure may change based on future promotions and even changes in your employment. By helping you understand how taxes eat up disposable income that can be put into investment opportunities, a tax return specialist can help guide you into making better financial decisions, and direct you to some important policies, such as disability insurance in the event that you are unable to work.

Contact accountants with a group like Mansell & Associates to learn more about filing taxes and tax returns.


30 June 2015